Micron (NASDAQ:) has suspended DRAM price discussions with customers following the devastating earthquake in Taiwan, industry research firm TrendForce said in a report Wednesday.
Micron, which has a significant DRAM manufacturing presence in Taiwan, has decided to reassess the impact of recent disasters before entering into contract price negotiations for the second quarter of 2024.
Similarly, Samsung (KS:) and SK Hynix, despite lacking DRAM production capacity in Taiwan, have also decided to suspend pricing.
“Despite the earthquake, the spot market for DRAM and NAND flash memory has shown signs of weak demand for several weeks,” TrendForce said in a report.
“So while Micron and Nanya survived the shutdowns, ample inventory prevented significant price fluctuations. Overall price increases were minimal and consumer enthusiasm remained low,” the company added.
According to TrendForce, this decision could lead to a slight near-term increase in DRAM spot prices, although the sustainability of this trend remains questionable amid continued weak demand.
The pricing pause by DRAM suppliers and module manufacturers is seen as a cautious move in response to the recent earthquake, highlighting the industry’s “cautious approach to the earthquake’s aftermath,” TrendForce reports.
MU shares fell 0.8% in premarket trading on Wednesday, while shares of SK Hynix and Samsung fell 3.8% and 1% in Korea.